Financial creditors to beleaguered carrier Go Airlines (India) Ltd. have agreed to provide Rs 450 crore worth interim financing, a person with direct knowledge of the matter said. The creditors, led by Central Bank of India, have agreed in-principle to allow the additional financing under the insolvency proceedings. The boards of the respective lenders still need to approve their respective contr
The creditors, led by Central Bank of India, have agreed in-principle to allow the additional financing under the insolvency proceedings. The boards of the respective lenders still need to approve their respective contribution to the financing, the person quoted above said.
Financial creditors to beleaguered carrier Go Airlines (India) Ltd. have agreed to provide Rs 450 crore worth interim financing, a person with direct knowledge of the matter said. The creditors, led by Central Bank of India, have agreed in-principle to allow the additional financing under the insolvency proceedings. The boards of the respective lenders still need to approve their respective contr
The creditors, led by Central Bank of India, have agreed in-principle to allow the additional financing under the insolvency proceedings. The boards of the respective lenders still need to approve their respective contribution to the financing, the person quoted above said.
With the interim financing, the airline is expecting resumption of flight services next month, this person said. It needs to seek further approvals from the Director General of Civil Aviation before commencing commercial flights. GoAir, which was renamed as Go First, owed Rs 6,521 crore to its financial creditors, as of April 23, according to a May 10 order by the Mumbai bench of the National Com
GoAir, which was renamed as Go First, owed Rs 6,521 crore to its financial creditors, as of April 23, according to a May 10 order by the Mumbai bench of the National Company Law Tribunal. The tribunal initiated insolvency proceedings, appointing Shailendra Ajmera as resolution professional earlier this month. The airline had gone into severe financial troubles after it claimed that it face losses
The airline had gone into severe financial troubles after it claimed that it face losses over Rs 10,000 crore due to fault engines provided by Pratt & Whitney. The airline has sought compensation for the same at an arbitration tribunal in Singapore.
Other domestic lenders to the company include Bank of Baroda, IDBI Bank and Axis Bank. Among the foreign lenders are Deutsche Bank, which provided fund-based working capital debt and UT Finance Corp. Ltd.
(With inputs from agencies)